The options available on the Modify Picture-in-Picture (PIP) pane depend on the PIP preview option selected. Some options (size, position, border, opacity, and drop shadow) do not apply when producing a video with the Side-by-Side Flash template.
To hide the PIP, make a selection on the Timeline. Click Hide PIP. The hidden portion of the PIP clip appears grey on the Timeline.Fade the PIP clip in and out of the main video for a smoother transition. On the Modify Picture-in-Picture (PIP) pane, enable the Fade PIP video in and out option.
The effect is not visible in the Preview Window until you click Finished on the Picture-in-Picture (PIP) pane.